If you're a foreign individual or entity planning to sell U.S. real estate—especially here in Washington State—you're likely subject to a critical tax requirement known as FIRPTA (Foreign Investment in Real Property Tax Act).
At our CPA firm, we specialize in assisting foreign sellers and their real estate agents with FIRPTA compliance, including accurate withholding, IRS form filings, and tax return preparation to recover any potential refund.
🔍 What Is FIRPTA and Why Does It Matter?
Under FIRPTA, when a foreign person sells U.S. real estate, the IRS requires the buyer to withhold up to 15% of the gross sales price and remit it to the IRS. This is not the final tax, but a prepayment toward any capital gains tax owed. To stay compliant and avoid costly mistakes or delays, it’s essential to file the proper forms and plan the process carefully.
💼 How We Help – End-to-End CPA Support
We offer full FIRPTA support tailored to both foreign sellers and their agents:
✅ Form 8288 & 8288-A Preparation & Submission
We prepare and file the required IRS forms for FIRPTA withholding within the strict 20-day deadline after closing.
✅ FIRPTA Withholding Review
We calculate the appropriate withholding amount and check for exceptions or reductions (such as when the property is under $300,000 and used as a residence).
✅ ITIN Application Support (Form W-7)
If the seller doesn't yet have a U.S. tax ID, we help apply for an ITIN to complete the process.
✅ 2026 U.S. Tax Return Filing
We file the 2026 tax return (usually Form 1040NR or 1120-F) to report the sale and apply for any refund of the withheld amount.
✅ Ongoing Guidance for a Smooth Transaction
We coordinate with escrow, the real estate agent, and any legal representatives to keep everyone informed and compliant.
📅 FIRPTA Process Timeline Overview
Here’s how a typical FIRPTA process works:
🔹 Before Closing
• Confirm foreign seller status
• Apply for ITIN if needed
• Prepare IRS Forms 8288 & 8288-A
🔹 Closing
• Buyer withholds up to 15% of the gross sale price
• Escrow submits withholding and forms to IRS
🔹 After Closing
• Seller receives stamped copy of Form 8288-A
• File 2026 tax return in 2027 to report sale and request refund, if eligible
🤝 Work with a Local CPA You Can Trust
We’ve worked with dozens of international sellers, escrow officers, and real estate agents throughout the Greater Seattle area. Whether you’re a seller or a listing agent assisting a foreign client, we’re here to help you navigate FIRPTA confidently.
📞 Have questions or ready to get started?
Contact us at 425 336 8675 or 425 230 7538 or email us at info@caoandassociate.net to schedule a consultation.
Let us simplify the FIRPTA process and ensure your transaction goes smoothly—with every box checked and every form filed on time.